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(BRUSSELS) – The EU’s ‘rebalancing measures’ in response to US tariffs on steel and aluminium came into effect Friday, targeting steel products, agricultural goods and other products worth some EUR 2.8 billion.
The EU says it has no choice and putting the duties is exercising its rights under World Trade Organisation (WTO) rules.
“The rules of international trade, which we have developed over the years hand in hand with our American partners, cannot be violated without a reaction from our side,” said Trade Commissioner Cecilia Malmstroem: “Our response is measured, proportionate and fully in line with WTO rules. Needless to say, if the US removes its tariffs, our measures will also be removed.”
The Commission notified the full list to the WTO following the US application of the full tariffs on EU steel and aluminium products, with unanimous support of the EU Member States.
The EU executive says it will ‘rebalance’ bilateral trade with the US taking as a basis the value of its steel and aluminium exports affected by the US measures. Those are worth 6.4 billion. Of this amount, the EU will rebalance on 2.8 billion worth of exports immediately. The remaining rebalancing on trade valued at 3.6 billion will take place at a later stage in three years’ time or after a positive finding in WTO dispute settlement if that should come sooner.
The EU rebalancing measures will be effective for as long as the US measures are in place, in line with the WTO Safeguards Agreement and EU legislation.
The EU’s response includes the launch on 1 June of legal proceedings against the US in the WTO and safeguard action to protect the European market from disruptions caused by the diversion of steel from the US market. A safeguards investigation was launched on 26 March. The Commission has nine months to decide whether safeguard measures would be necessary. If the investigation confirms the necessity for swift action, such a decision could be taken by summer. As regards aluminium, the Commission has put in place a surveillance system for imports of aluminium to be prepared in case action is required in that sector.
The Implementing Regulation entering into force Friday sets out the products and level of duties to be applied, both now and in the future, if necessary.
The list of products is the same as in the previous Implementing Regulation of 16 May and as notified to the WTO on 18 May.
